In an interview with MCV following its split from UKIE, the stat-tracking firm says the trade mustn’t forget the power of boxed retail, as it still accounts for 70 per cent of the UK software market.

MD John Pinder told us that publishers “would have bitten your hands off” ten years ago for the sort of sales figures posted today.

“Remember it is still a £1bn industry,” he added. “The industry is in danger of talking retail down too much.“It needs to manage its transition to digital very carefully. And learn from the mistakes of the music industry. That industry lost control for many years when technology led their market away from them.

“Hopefully games will learn from that and manage its transition in a way that doesn’t destroy its big revenue area – which is boxed retail.”

He continued: “Right now we have the perfect storm. The appalling state of the economy combined with the end of the console lifecycles.”

MCV is the leading trade news and community site for all professionals working within the UK and international video games market. It reaches everyone from store manager to CEO, covering the entire industry. MCV is published by NewBay Media, which specialises in entertainment, leisure and technology markets.